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Distance and Time Effects in Swedish Commodity Prices, 1732-1914

Author

Listed:
  • Mario J. Crucini

    () (Vanderbilt University)

  • Gregor W. Smith

    () (Queen's University)

Abstract

We study the role of distance and time in statistically explaining price dispersion across 32 Swedish towns for 19 commodities from 1732 to 1914. The resulting large number of relative prices (502,689) allows precise estimation of distance and time effects, and their interaction. We find an effect of distance that declines significantly over time, beginning in the 18th century, well before the arrival of canals, the telegraph, or the railway.

Suggested Citation

  • Mario J. Crucini & Gregor W. Smith, 2016. "Distance and Time Effects in Swedish Commodity Prices, 1732-1914," Working Papers 1357, Queen's University, Department of Economics.
  • Handle: RePEc:qed:wpaper:1357
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    File URL: http://qed.econ.queensu.ca/working_papers/papers/qed_wp_1357.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    distance effect; law of one price;

    JEL classification:

    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts

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